INDEX

RATIOS

Key Financial Ratios

➢ Debt-Equity Ratio
➢ Long Term Debt-Equity Ratio
➢ Current Ratio

Turnover Ratio

❖ Fixed Assets
❖ Inventory
❖ Debtors
❖ Interest Cover Ratio

Profitability Ratios

❖ PBIDTM (%)
❖ PBITM (%)
❖ PBDTM (%)
❖ CPM (%)
❖ APATM (%)
❖ ROCE (%)
❖ RONW (%)

Valuation Ratios

❖ Price Earning (P/E)

❖ Price to Book Value (P/BV)
❖ Price/Cash EPS (P/CEPS)
❖ EV/EBIDTA
❖ Market Cap/Sales

FINANCIAL OVERVIEW

❖ Equity Paid Up
❖ Networth
❖ Capital Employed
❖ Net Working Capital ( Incl. Def. Tax)
❖ Value of Output
❖ Cost of Production
❖ Selling Cost
❖ CP (Cash Profit)
❖ CEPS (annualised) (Unit Curr)
❖ EPS (annualised) (Unit Curr)
❖ Dividend (annualised%)
❖ Payout (%)
❖ Debt-Equity Ratio
❖ Long Term Debt-Equity Ratio
❖ Current Ratio
❖ Fixed Assets Ratio
❖ Inventory Ratio
❖ Debtors Turnover Ratio
❖ Interest Cover Ratio
 ❖ ROCE (%)
❖ RONW (%)
❖ Debtors Velocity (Days)
❖ Creditors Velocity (Days)
❖ Value of Output/Total Assets
❖ Value of Output/Gross Block
❖ Free Cash Flows to Equity
❖ Free Cash Flows to the Firm
❖ Price to Free Cash Flows to Equity
❖ Price to Free Cash Flows to the Firm

PROFIT AND LOSS

Income :

❖ Sales Turnover
❖ Job Work & Service Income
❖ Pool Account Adjustments
❖ Other Operating Divisions / Income
❖ Discount Received
❖ Sales - Manufacturing
❖ Sales - Trading
❖ Sales – Export
❖ Internal Consumption
❖ Property Development
❖ Own Film Production
❖ Film Distribution
❖ Co- Produced Films
❖ Sale Export of Film Software
❖ Sale of Films
❖ Foreign Exchange Earned
❖ Excise Duty
❖ Net Sales
❖ Other Income
❖ Export Incentives
❖ Import Entitlements
❖ Dividend Income
❖ Interest Income
❖ Interest on Application Money
❖ Income from Bill Discounting
❖ Stock Adjustment
❖ Total Income

Expenditure :

❖ Raw Materials
❖ Power & Fuel Cost
❖ Employee Cost
❖ Other Manufacturing Expenses
❖ Selling & Administration Expenses
❖ Discount Paid
❖ Distribution Expenses
❖ Other Selling Expenses
❖ Legal Expenses
❖ Communication Expenses
 ❖ Travel Expenses
❖ R & D Expenses
❖ Miscellaneous Expenses
❖ Donations
❖ Bad Debts Written Off
❖ Expenses Ammortised
❖ Interest
❖ Financial Charges
❖ Depreciation
❖ Extraordinary Items
❖ Adjusted Net Profit
❖ P & L Balance brought forward
❖ Appropriations
❖ Interim Dividend Paid
❖ Dividend
❖ Preference Dividend
❖ Earning Per Share-Unit Curr
❖ Earning Per Share (Adj)-Unit Curr
❖ Book Value-Unit Curr
❖ Book Value(Adj)-Unit Curr

BALANCE SHEET

Sources of Funds :

❖ Share Capital
❖ Equity Authorised
❖ Preference Capital Authorised
❖ Unclassified Authorised
❖ Equity Issued
❖ Equity Subscribed
❖ Equity Called Up
❖ Equity Paid Up
❖ Preference Capital Paid Up
❖ Unclassified Share Paid Up
❖ Capital Reserves
❖ General Reserves
❖ Share Premium
❖ Debenture Redemption Reserves
❖ Capital Redemption Reserve
❖ Debt Redemption Reserve
❖ Amalgamtion Reserve
❖ Contingency Reserve
❖ Total Revaluation Reserve
❖ Total Shareholders Funds
❖ Secured Loans
❖ Convertible Debenture
❖ Non Convertible Debenture
❖ Partly Convertible Debenture
❖ Less : Debentures Calls in arrears
❖ Term Loans
❖ Deferred Credit / Hire Purchse
❖ Hire Purchase
❖ Bridge Loans
❖ Cash Credit / Packing Credit / Bill Discounted
 ❖ Unsecured Loans
❖ Accrued Interest
❖ Deferred Liabilities
❖ Commercial Paper

Application of Funds :

❖ Gross Block
❖ Less : Accumulated Depreciation
❖ Less : Impairment of Assets
❖ Net Block
❖ Goodwill
❖ Patent
❖ Technical Know-how
❖ Leasehold Land
❖ Capital Work-in Progress
❖ Capital Advances
❖ Pre-operative Expenditure
❖ Other Capital Work-in Progress
❖ Producing Properties
❖ Inventories
❖ Sundry Debtors
❖ Cash and Bank
❖ Loans & Advances
❖ Sundry Creditors
❖ Acceptances
❖ Application Money
❖ Warrants Application Money
❖ Unclaimed Dividend
❖ Interest Accrued but Not Due
❖ Provisions
❖ Miscellaneous Expenses not written off
❖ Deferred Tax Assets
❖ Deferred Tax Liabilities

INVESTMENTS

❖ Investments
❖ Equity-Quoted
❖ Equity-Unquoted
❖ Debenture-Quoted
❖ Debenture-Unquoted
❖ G. Sec-Quoted
❖ G. Sec-Unquoted
❖ Units-Quoted
❖ Units-Unquoted
❖ Pref. Shares

LATEST EQUITY

❖ Latest Equity (Subscribed)

❖ Latest Reserves
❖ Latest EPS-Unit Curr.
❖ Latest Book Value-Unit Curr.
❖ Stock Exchange
 ❖ Latest Market Price-Unit Curr.
❖ Latest P/E Ratio
❖ Latest P/BV
❖ Market Capitalisation
❖ Dividend Yield%

RATIOS - KEY FINANCIAL RATIOS

Key Ratios :

Debt-Equity Ratio
A measure of a company's financial leverage calculated by dividing its total liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
(Total debt / (share capital + reserves))

Long Term Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total long term liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
(total debt – cash credit – commercial paper –bridge loans – short term loans to group
companies- short term loans to others – inter corporate deposits – working capital loans ) / (share
capital +reserves)

Current Ratio
A liquidity ratio that measures a company's ability to pay short-term obligations.
(total Inventory +sundry debtors + cash and bank balance+ loans and advances / (total current
liabiliites + cash credit + commercial paper + bridge loans + short term loans to group companies
+ short term loans to others + inter corporate deposits + working capital loans)

Turnover Ratios :

Fixed Assets
Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue -
the higher the number the better. It also indicates pricing strategy: companies with low profit
margins tend to have high asset turnover, while those with high profit margins have low asset
turnover.
(Sales / (gross fixed assets excluding capital work in progress - revaluation reserve))

Inventory
A ratio showing how many times a company's inventory is sold and replaced over a period :
(Sales / total inventory)

Debtors
Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt
collection of a firm. In simple words it indicates the number of times average debtors (receivable)
are turned over during a year.
(Sales / sundry debtors)

Interest Cover Ratio

A ratio used to determine how easily a company can pay interest on outstanding debt. The
interest coverage ratio is calculated by dividing a company's earnings before interest and taxes
EBIT) of one period by the company's interest expenses of the same period:
(adjusted net profit + tax + interest) / interest

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Profitability Ratios:

PBIDTM (%)
(adjusted gross profit + interest / sales) * 100

PBITM (%)
(adjusted gross profit + interest – depreciation / sales ) * 100

PBDTM (%)
(adjusted gross profit / sales ) * 100

CPM (%)
(adjusted net profit + depreciation) / sales * 100

APATM (%)
(adjusted net profit / sales) * 100

ROCE (%)
(adjusted net profit + tax + interest) / (sharecapital + reserve + total debt – miscelleanous exp.
Not written off) * 100

RONW (%)
(Adjusted net profit – preference dividend) / ( equity paid up + reserves ) * 100

Go to Index

Valuation Ratios :

Price Earning (P/E)

A valuation ratio of a company's current share price compared to its per-share earnings.
(price / eps)

Price to Book Value ( P/BV)

A ratio used to compare a stock's market value to its book value. It is calculated by dividing the
current closing price of the stock by the latest book value per share.
(Networth / No. of shares)

Price/Cash EPS (P/CEPS)

A valuation ratio of a company's current share price compared to its per-share cash earnings.
(price / ceps)

EV/EBIDTA
EV/EBITDA is a valuation multiple that is often used in parallel with, or as an alternative to, the
P/E ratio. The term EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation,
Amortization. An advantage of this multiple is that it is capital structure-neutral.Therefore, this
multiple can be used for direct cross-companies application.

Enterprise Value (EV) - Mcap +Debt – Cash & Bank Balance

Enterprise Value (EV) for Banks - Mcap+Deposits+Borrowings – Cash & Money

Market Cap/Sales
(Market cap / Gross Sales)
Note:

1.) Balance Sheet figures are Avg. of Current and Previous Year, And P&L A/c figures are
annualised and of current year only.

2.) Criteria for Adjusting Extra-Ordinary Item to Net Profit: If total extra-ordinary income or
expense (texmi) is greater than 10% of profit before tax only then extra-ordinary item are adjusted
(added or deducted) in net profit.

Go to Index

FINANCE - FINANCIAL OVERVIEW

Equity Paid Up
This datafield captures the net amount of paid up equity shares of a company that have been
subscribed to, paid for and allotted by the company.

Networth
For a company, total assets minus total liabilities. Net worth is an important determinant of the
value of a company, considering it is composed primarily of all the money that has been invested
since its inception, as well as the retained earnings for the duration of its operation. Net worth can
be used to determine creditworthiness because it gives a snapshot of the company's investment
history. also called owner's equity, shareholders' equity, or net assets.
in Capitaline : (Equity Paid Up + Total Reserves Excluding Revaluation Reserves)

Capital Employed
The total amount of capital used for the acquisition of profits or The value of all the assets
employed in a business. Or Fixed assets plus working capital.
in Capitaline :( Equity Paid Up + Total Reserves Excluding Revaluation Reserves) + T. Debt. +
Other Liabilities)

Net Working Capital ( Incl. Def. Tax)

A measure of both a company's efficiency and its short-term financial health. The working capital
ratio is calculated as:
(Current Assets - Current Liabilities)

Value Of Output
(Net Sales + Change in Stock)

Cost of Production
(Raw material cost + Power & fuel + Employee Cost + Director Remuneration + other operating
expenes + Depreciation - closing stock of WIP + opening stock of WIP + Insurance )

Selling Cost
(Advertisment + Distribution Expenses+ Marketing Expenses+Commssion expenses on
sales+Other Selling Expenses)

CP
(PAT + Depreciation)

CEPS (annualised) (Unit Curr)

(Rep Net Profit - Div. tax + Dep.) / Equity Paid up*Face Value
EPS (annualised) (Unit Curr)
(Rep. Net Profit - Div. tax / Equity Paid up)*Face Value

Dividend (annualised%)
(Equity Div. amt/Equity Pd up)*100

Payout (%)
(Equity Div. Amt./(Adj. Profit after Tax-Div. Tax))*100

Go to Index

Key Ratios :

Debt-Equity Ratio
A measure of a company's financial leverage calculated by dividing its total liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
(Total debt / (share capital + reserves))

Long Term Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total long term liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
(total debt – cash credit – commercial paper –bridge loans – short term loans to group
companies- short term loans to others – inter corporate deposits – working capital loans ) / (share
capital +reserves)

Current Ratio
A liquidity ratio that measures a company's ability to pay short-term obligations.
(total Inventory +sundry debtors + cash and bank balance+ loans and advances / (total current
liabiliites + cash credit + commercial paper + bridge loans + short term loans to group companies
+ short term loans to others + inter corporate deposits + working capital loans)

Turnover Ratios :

Fixed Assets Ratio

Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue -
the higher the number the better. It also indicates pricing strategy: companies with low profit
margins tend to have high asset turnover, while those with high profit margins have low asset
turnover.
(Sales / (gross fixed assets excluding capital work in progress - revaluation reserve))

Inventory Ratio
A ratio showing how many times a company's inventory is sold and replaced over a period :
(Sales / total inventory)

Debtors Ratio
Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt
collection of a firm. In simple words it indicates the number of times average debtors (receivable)
are turned over during a year.
(Sales / sundry debtors)
Interest Cover Ratio
A ratio used to determine how easily a company can pay interest on outstanding debt. The
interest coverage ratio is calculated by dividing a company's earnings before interest and taxes
EBIT) of one period by the company's interest expenses of the same period:
(adjusted net profit + tax + interest) / interest

ROCE (%)
A fundamental financial performance measure. A percentage figure representing profit before
interest against the money that is invested in the business. (profit before interest and tax, divided
by capital employed, x 100 to produce percentage figure.)
(adjusted net profit + tax + interest) / (sharecapital + reserve + total debt – miscelleanous exp.
Not written off) * 100

RONW (%)
Adjusted net profit – preference dividend) / ( equity paid up + reserves ) * 100

Debtors Velocity (Days)

Debtors / (Gross Sales / 365 days)

Creditors Velocity (Days)

(Creditors / (Cost of Production + Selling Cos+closing stock of Finished Goods-opening stock of
Finished Goods)*365 days)

Assets Utilisation Ratio (times) :

Value of Output/Total Assets

(Value of Output/Average Total Assets) where Value of Output is : (Net Sales + Change in Stock)

Value of Output/Gross Block

(Value of Output/Average Gross Block) where Value of Output is : (Net Sales + Change in Stock)

Free Cash Flows to Equity

(Net Cash from Operating Activities - Capital Expenditure + Net Debt Issued)

Free Cash Flows to the Firm

(Net Cash from Operating Activities + Interest Expenses * (1-Tax Rate) - Capital Expenditure)

Price to Free Cash Flows to Equity

(Year End Close Price / (Net Cash from Operating Activities - Capital Expenditure + Net Debt
Issued))

Price to Free Cash Flows to the Firm

(Year End Close Price / (Net Cash from Operating Activities + Interest Expenses * (1-Tax Rate) -
Capital Expenditure))

Note :

1.) Balance Sheet figures are Avg. of Current and Previous Year, And P&L A/c figures are
annualised and of current year only.

2.) Criteria for Adjusting Extra-Ordinary Item to Net Profit: If total extra-ordinary income or
expense (texmi) is greater than 10% of profit before tax only then extra-ordinary item are adjusted
(added or deducted) in net profit.
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FINANCE - PROFIT AND LOSS

Income :

Sales Turnover
Sales turnover / Operating Income
Total income from operations. Turnover will also include job work, processing charges, income
from other divisions, services provided.

Job Work & Service Income

This refers to income generated by a company when it undertakes contractual manufacturing or
processing of a product as per client’s specifications.

Pool Account Adjustment

Pool Account Adjustment is a mechanism whereby oil companies are compensated for selling
regulated petroleum products at government-administered prices. Under the Administered Price
Mechanism (APM), prices of all major petroleum products are fixed by the Oil Coordination
Committee. Companies are required to sell these products at government-administered prices.
The shortfall between the estimated cost of production and the administered price is the subsidy
provided by the government through the Oil Coordination Committee.

Other Operating Divisions / Income

Income from other operational divisions of the company.

Discount Received
Discount received by the company from diff. sources.

Sales - Manufacturing
Income generated by companies from the sale of goods manufactured by them, their by-products,
scrap, raw material and stores are included in industrial sales.

Sales - Trading
Trading income refers to income generated from the activity of buying and selling of goods.
Trading income, here, does not refer to income from trading in shares or other financial
instruments. It is limited to trading in goods.

Sales - Export
That part of income earned by way of exports out of the total sales made (irrespective of
manufactured or traded goods).

Internal Consumption
Includes inter-divisional transfers.

Property Development
The part of income, generally applicable to construction companies.

Own Film Production

Applicable only to companies producing and distributing films.

Film Distribution
Applicable only to companies producing and distributing films.

Co-Produced Films
Applicable only to companies producing and distributing films.
Sale/Export of Film Software
Companies producing and distributing films. Income earned from export of films / software
produced/co-produced/distributed by the company

Sale of Film
Companies producing and distributing films. Income earned from sale of films / software
produced/co-produced/distributed by the company.

Foreign Exchange Earned

Income earned in foreign exchange , generally by Travel Agencies.

Excise Duty
Excise duty is usually levied on all goods produced by a company. It is often levied even on
goods that are produced for internal consumption by the company. If companies report excise
duty on goods sold and those in stock separately, we add the two and report the total excise duty
paid by the company.

Net Sales
Net of Excise duty

Other Income
Other Income usually means income from sources other than the main sources of income.

Export Incentives
Export incentives are usually in the form of duty drawbacks, excise rebates, import licences,
concession in import duty and tax exemptions under the Income Tax.

Import Entitlements
Import entitlements are aids, granted by the Central Government under an Export Promotion
Scheme.

Dividend Income
Includes dividend received from subsidiaries, income from units of UTI / mutual funds.

Interest Income
The term for reporting the interest earned on cash temporarily held in savings accounts,
certificates of deposits, or other investments. Because the interest wasn't part of the original
investment, companies record it separately, as interest income.

Interest on Applicaiton Money

Interest earned due to money received on issue of shares / debentures / bonds etc. and
deposited in banks.

Income from Bill Discounting

Banks and NBFCs purhcase bills of exchange, promisory notes etc. from parties and make
equivalent payments after deducting some amount from the face value of the bill as discounting
charges. The discounting charges so deducted are referred to as bill discounting income of the
banks and NBFCs. Bill discounting income may be from discounting of the original bills or from
the bills already discounted.

Stock Adjustments
Increase or decrease in stock of the company.

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Total Income
Total income is the sum of all kinds of incomes generated by an enterprise during an accounting
period.
Usually, company accounts present a break-up of the total income in terms of sales and “other
income” often, they provide detailed information on the various sources of income.

Total income consists of :

1. Sales
2. Income from financial services
3. Other income
4. Prior period and extraodinary income
5. Change in stock of finished and semi-finished goods.

Expenditure :

Raw Materials
Includes raw material consumed and finished goods purchased.
Raw Materials consist of :
Opening Stock of Raw Materials
Purchases of Raw Material
Purchase of Trading Goods
Direct Expense on Purchase/Adjustment
Closing Stock of Raw Materials
Adjustment on amalgamation / trial runs

Power & Fuel Cost

Power & Fuel Cost consist of :
Power, Oil & Fuel
Electricity Expenses
Water Charges

Employee Cost
Employee Cost consist of :
Salaries,Wages & Bonus
Contribution to funds
Staff Welfare Expenses
VRS compensation
Gratuity Paid
Other Employee Cost

Other Manufacturing Expenses

Other Manufacturing Expenses consist of :
Freight Inwards & Transport charges
Packing Materials
Job Work / Contract / Processing Charges
Drilling Operation Charges
Stores Consumed
Repairs
Repairs - Plant & machinery
Repairs - Building
Repairs - Others
Technical fees paid
Wheeling charges payable
Project / Production Charges
Own Film Production Expense
Handling, Clearing Charges
Coupon Sales, Food, Beverages
License Fee / Operation Charges
Other Operating Expenses

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Selling and Administration Expenses

The total amount spent on selling and distribution. It includes expenditure on advertising,
marketing and distribution by the company. Individually, these are disparate activities and thus
very different expenditure items and are thus reported separately. However, some relatively
smaller companies do club all these or some

Discount paid
A discount is an amount or percentage of reduction in selling price of a product.

Distribution Expenses
This is the expenditure the company incurs to distribute its products to consumers or
intermediaries such as distributors, wholesalers or retailers.

Other Selling Expenses

Includes warranty claims, guarantee charges etc

Legal Expenses
Includes professional charges

Communication Expenses
Communication expenses includes cost incurred by the company on telephone, telegram,
postage, fax satellite and internet services.

Travel Expenses
expenses incurred by the company on travel. This includes domestic as well as foreign travel, by
the directors, management or staff.

R & D Expenses
This data-item captures the current expenses incurred and reported by the company on research
and development. It does not include any capital expenditure on research and development.

Miscellaneous Expenses
This data field will include all the expenses reported by the companies under the head
“miscellaneous expenses” or “other expenses”.

Donations
Donations made by companies are reported in this datafield. These are not directly related to the
day– to–day operations and are usually incurred for social causes.

Bad Debts written off

Includes doubtful loans/ advances written off etc.

Expenses Ammortised
Any expenditure incurred written off : eg preliminary expenses, VRS expense, share issue
expenses etc.

Go to Index
Interest
Interest paid on all kinds of borrowings is included in this data-field. It includes all short-term as
well as all long-term borrowings of the company. It includes interest paid on borrowings,
debentures and deposits and interest paid to directors. In the case of banks, it also includes
interest paid on inter-bank borrowings. Often, companies report net interest payments. These are
interest payments net of interest earnings. However, we report gross interest payments and make
a separate entry for interest earnings on the income side.
Examples :
Debenture Interest
Fixed Interest
Interest on Deposits
Interest on External Commercial Borrowings
Other Interest

Financial Charges
Includes bank charges, bank commission/brokerage given under administrative expenses.

Depreciation
As fixed assets, typically plant and machinery, get old, their value reduces because of wear and
tear. This reduction in value needs to be reflected in the profit and loss account. Depreciation is
the measure of this wear and tear of assets and it is charged as an expense in the profit and loss
account.
Consist of :
Depreciation for the current year
Less : On Revalued Assets
Lease Adjustment
Other Adjustment

Extraordinary Items
Total / net prior year adjustments made by the company after arriving at net profit.

Profit/(Loss) on Sale of Assets

Profit/(Loss) on Sale of Investment.
Income/(Expenses) of prior years
Gain / (loss) on foreign exchange transactions
Depreciation written back/(Not provided)
(Depreciation on Revaluation of Assets)
VRS Adjustment
Miscellaneous Income/Expense

Less : Tax on Extra Ordinary Income/Expense

Less : Deferred Tax on Extra Ordinary Income/Exp.
Note : Tax are calculated for extraordinary items (tax rate : tax/pbt)

Go to Index

Adjusted Net Profit

Adjusted for Extraordinary Items (calculated for information purpose)

P & L Balance brought forward

Previous year profit brought forward by the company.

Appropriations
The act of setting aside money for a specific purpose. A company appropriates funds in order to
delegate cash for the necessities of its business operations. This may occur for any of the
functions of a business, including setting aside funds for employee salaries, research and
development, dividends and all other uses of cash.
Example :
Appropriation to Capital Redemption Reserve
Appropriation to Debenture Redemption Reserve
Appropriation to General Reserve
Appropriation to Investment Allowance Reserve
Appropriation to Other Reserves
Prior Year Dividend Paid
Provision for Equity Dividend
Provision for Preference Dividend
Dividend Tax

Interim Dividend Paid

A dividend payment made before a company's AGM and final financial statements. This declared
dividend usually accompanies the company's interim financial statements.

Dividend
A distribution of a portion of a company's earnings, decided by the board of directors, to a class of
its shareholders.

Preference Dividend
A dividend that is accrued and paid on a company's preferred shares. In the event that a
company is unable to pay all dividends, claims to preferred dividends take precedence over
claims to dividends that are paid on common shares.

Earnings Per Share-Unit Curr

Earnings Per Share of the company to be calculated as follows :
(Net Profit - Preference Dividend)/Equity Paid Up * Face value of equity

Earnings Per Share(Adj)-Unit Curr

Earnings Per Share adjusted for change in number of shares due to split or bonus issues.

Book Value-Unit Curr

Book Value of the company to be calculated as follows :
(Equity Paid up + Reserves (excluding revaluation reserves ) / Equity Paid up) * Face Value of
equity share

Book Value(Adj)-Unit Curr

Book Value adjusted for change in number of shares due to split or bonus issues.

Go to Index
FINANCE - BALANCE SHEET

Sources of Funds :

Share Capital
Funds raised by issuing shares in return for cash or other considerations. The amount of share
capital a company has can change over time because each time a business sells new shares to
the public in exchange for cash, the amount of share capital will increase. Share capital can be
composed of both common and preferred shares.

Equity Authorised
Authorised equity shares is the maximum number of equity shares a company can issue. The
maximum limit includes shares to be issued against GDRs/ADRs, shares that would arise on
conversion of convertible debt instruments, etc Equity shares carry carry voting rights and carry
the right to share the profits in the company.

Preference Capital Authorised

Authorised preference shares is the maximum number of preference shares a company can
issue. Preferential shares carry a preferential right with respect to dividends and a preferential
right to capital. They do not carry voting rights. Authorised preference shares is the maximum
number of preference shares a company is authorised to issue.

Unclassified Authorised
Companies have two types of shares viz. equity shares and preference shares. At times
companies do not classify shares at the time of incorporation or at the time of increase in the
capital. Such shares which have not been classified are known as Unclassified shares. The
maximum number of such unclassified shares that the company can issue are captured in this
datafield

Equity Issued
This datafield captures the number of equity shares issued by the company.

Equity Subscribed
When a company decides to issue equity shares, investors apply to the company to subscribe to
these. The company then allots these shares to the investors. The shares that are alloted to the
applicants are known as subscribed equity shares.

Equity Called Up
Called up Share Capital is the total amount of issued capital for which the shareholders are
required to pay.

Equity Paid Up
This datafield captures the net amount of paid up equity shares of a company that have been
subscribed to, paid for and allotted by the company.

Preference Capital Paid Up

Convertible Preference Share Paid Up
Non-convertible Preference Share Paid UP

Unclassified Shares Paid Up

Unclassified shares are those shares that are kept in abeyance/unsubscribed and may be
converted into Equity or Preferance shares as the directors deem fit before they are issued. Form
5 mentions conversion of Shares into stock and reversal of stock into shares but there is no
mention of reclassification of unclassified shares into Equity or Preferance shares.
Capital Reserves
A type of account on company's balance sheet that is reserved for long-term capital investment
projects or any other large and anticipated expense(s) that will be incurred in the future. This type
of reserve fund is set aside to ensure that the company has adequate funding to at least partially
finance the project.

General Reserves
It is a reserve created by transferring certain amount of undistributed profit for funding expansion,
acquisition, paying dividends, discharging of liabilities, writing off extraordinary and/or contingent
losses ,buyback and/or redemption of securities.

Share Premium
Usually found on the balance sheet, this is the account to which the amount of money paid (or
promised to be paid) by a shareholder for a share is credited to, only if the shareholder paid more
than the cost of the share.

Debenture Redemption Reserve

A provision that was added to the Indian Companies Act of 1956 during an amendment in the
year 2000. The provision states that any Indian company that issues debentures must create a
debenture redemption service to protect investors against the possibility of default by the
company.

Capital Redemption Reserve

Capital RedemptionRevere is an reserve created when a company buys it owns shares which
reduces its share capital. This reserve is not distributable to shareholders and can be used to pay
bonus shared issued.

Debt Redemption Reserve

A provision that was added to the Indian Companies Act of 1956 during an amendment in the
year 2000. The provision states that any Indian company that issues debentures must create a
debenture redemption service to protect investors against the possibility of default by the
company.

Amalgamation Reserve
Amalgamation reserve means the expenses bear by Transferee company for amalgamation with
Transferor company is treated as reserve, this reserve is called as amalgamation reserve.

Taxation Reserve

Exchange Fluctuation Reserve

Foreign Exchange Earnings Reserve

Exchange Profit / Allowance Reserve

Deferred Credit Reserve

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Contingency Reserve
Contingency reserves are sums set aside to cover anticipated future liabilities or reductions in
asset values.
Types of Contingency Reserves : Contingencies include potentially uncollectible monies owed the
company, potential obligations under product warranties or related to product defects, judgments
from pending or threatened litigation and likely losses due to fires and other hazards

Total Revaluation reserve

Revaluation Reserves = Fixed Asset Revaluation Reserve + Investment Revalulation Reserve +
Other Revaluation Reserve.

Total Shareholders Funds

A measure of the shareholders' total interest in the company represented by the total share
capital plus reserves.

Secured Loans
A secured loan is a loan in which the borrower pledges some asset as collateral for the loan,
which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus
secured against the collateral — in the event that the borrower defaults, the creditor takes
possession of the asset used as collateral and may sell it to regain some or all of the amount
originally lent to the borrower,

Convertible Debentures
A type of loan issued by a company that can be converted into stock by the holder and, under
certain circumstances, the issuer of the bond. By adding the convertibility option the issuer pays a
lower interest rate on the loan compared to if there was no option to convert. These instruments
are used by companies to obtain the capital they need to grow or maintain the business.
Debentures / Bonds is a certificate of debt which usually : represents a part of loan; bears
interest; matuares on a stated future date. It may be with or without a charge on the assets of the
company. Debentures do not have voting rights.

Non Convertible Debentures

A debenture is basically an unsecured loan to a corporation. Often there is a provision to
exchange this debt for corporate stock. Non-convertible debentures do not have this provision.

Partly Convertible Debentures

A type of convertible debenture, part of which will be redeemed by the issuing company after a
specified period of time and part of which is convertible into equity or preference shares at the
end of the specified period. The ratio of conversion for the partially convertible debenture is
decided by the issuer when the debenture is issued.

Less : Debentures Calls in arrears

Calls outstanding to be paid by the shareholders.

Term Loans
A loan from a bank for a specific amount that has a specified repayment schedule and a floating
interest rate. Term loans almost always mature between one and 10 years.

Deferred Credit / Hire Purchase

Prepayment received from customers or tenants, and carried forward as a liability until the
associated goods, services, or benefits are delivered. Also called deferred liability or deferred
revenue.

Go to Index

Hire Purchase
hire purchase (HP) A method of buying goods in which the purchaser takes possession of them
as soon as an initial instalment of the price (a deposit) has been paid and obtains ownership of
the goods when all the agreed number of subsequent instalments have been paid. A hire-
purchase agreement differs from a credit-sale agreement and sale by instalments (or a deferred
payment agreement) because in these transactions ownership passes when the contract is
signed.It also differs from a contract of hire, because in this case ownership never passes.

Bridge Loans
A short-term loan that is used until a person or company secures permanent financing or
removes an existing obligation. This type of financing allows the user to meet current obligations
by providing immediate cash flow. The loans are short-term (up to one year) with relatively high
interest rates and are backed by some form of collateral such as real estate or inventory.

Cash Credit /Packing Credit / Bills Discounted

A short term cash loan to company.

Unsecured Loans
Unsecured Loans refers to any type of loans or general obligation that is not collateralised by a
lien on specific assets of the borrower in the case of a bankruptcy or liquidation. In the event of
the bankruptcy of the borrower, the unsecured creditors will have a general claim on the assets of
the borrower after the specific pledged assets have been assigned to the secured creditors,
although the unsecured creditors will usually realize a smaller proportion of their claims than the
secured creditors.

Accrued Interest
A term used to describe an accrual accounting method when interest that is either payable or
receivable has been recognized, but not yet paid or received. Accrued interest occurs as a result
of the difference in timing of cash flows and the measurement of these cash flows.

Deferred Liabilities
Money that a company receives from a customer as prepayment for some good or service. A
deferred liability is listed on a balance sheet as a liability until the good or service is delivered.
This is because the company would have to return the money if it does not keep its end of the
bargain as promised. A deferred liability is also called a deferred credit or deferred revenue.

Commercial Paper
An unsecured, short-term debt instrument issued by a corporation, typically for the financing of
accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial
paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting
prevailing market interest rates.

Application of Funds :

Gross Block
The total value of all of the assets that a company owns. Value is determined by the amount it
cost to acquire these assets, and it is not decreased to take into account the effects of
depreciation.

Example :
Goodwill - Includes patents, trademark, and other intangible assets.
Patent
Technical Know-how
Leasehold Land
Freehold Land
Railway Sidings
Buildings
Ponds & Reservoirs
Water supply / tubewells
Plant and Machinery
Ships / Vessels
Electrical Installations / Fittings
Factory Equipments
Furniture and Fixtures
Office Equipments
Computers
Lab and R & D Equipment
Medical Equipment and Surgical Instrument
Vehicles
Transmission and Distribution Equipment
Wind Turbines
Aircraft and Helicopters
Other Fixed Assets

Less : Accumulated Depreciation

The Accumulated depreciation of an asset up to a single point in its life. Regardless of the
method used to calculate it, the depreciation of an asset during a single period is added to the
previous period’s accumulated depreciation to get the current accumulated depreciation.

Go to Index

Less:Impairment of Assets
An asset is said to be impaired if its carrying cost is greater than its recoverable value. Carrying
cost is the net cost of an asset as reflected in the balance sheet (ie gross fixed asset value less
cumlative depreciation) and recoverable value of an asset is usually the higher of either the net
selling price or its value derived from estimates of discounted future cash flows from the asset.
Companies are required to follow ICAI’s AS-28 on impairment of assets.

Net Block
Net block is the gross block less accumulated depreciation on assets. Net block is actually what
the asset are worth to the company.

Goodwill
Includes patents, trademark, and other intangible assets.

PATENT
A patent is a set of exclusive rights granted by a state (national government) to an inventor or
their assignee for a limited period of time in exchange for a public disclosure of an invention.

Technical Know-how
technical know-how is an intellectual property right which is nothing but the techincal knowledge
for carrying out any process and such knowledge is available with some specific people who have
the know-how patented.

Leasehold Land
Leasehold is a form of property tenure where one party buys the right to occupy land or a building
for a given length of time.

Capital Work in Progress

Work that has not been completed but has already incurred a capital investment from the
company.

Capital Advances
Advances given by company for capital expenditure.

Pre-operative Expenditure
Revenue expenses other than salaries and interest incurred before commercial production is
called other pre-operative expenses. This datafield captures such pre-operative expenses
incurred by the company and not charged to the profit and loss account.
Other Capital Work in Progress
Other capital work in progress like building under construction, plant under installation etc.

Producing Properties
Applicable to oil & oil product producing companies.

Inventories
The raw materials, work-in-process goods and completely finished goods that are considered to
be the portion of a business's assets that are ready or will be ready for sale. Inventory represents
one of the most important assets that most businesses possess, because the turnover of
inventory represents one of the primary sources of revenue generation and subsequent earnings
for the company's shareholders/owners.

Sundry Debtors
Sundry Debtors is an entity from who amounts are due for goods sold or services rendered or in
respect of contractual obligations. Also termed: debtor, trade debtor, and account receivable.

Cash and Bank

Balance with Bank
Term Deposit with Banks
Cash in hand / others

Go to Index

Loans and Advances

Bills Receivable
Loans to Subsidiary
Loans to Group / Associate Companies
Loans to Others
Deposits with Government
Intercorporate Deposits
Deposits Others
Advance Tax
Pre-paid expenses
Advances to suppliers
Advances for capital goods
Advances recoverable in cash or kind
Less : Provision for Doubtful Advances
Interest Accrued on Investments
Application money pending allotment

Sundry Creditors
Miscellaneous small or infrequent suppliers that are not assigned individual ledger accounts but
are classified as a group.
Examples :
Creditors for Goods
Creditors for Capital Goods
Creditors for Finance
Creditors for Others
Acceptances
A formal indication by a debtor of willingness to pay a time draft or bill of exchange.

Application Money
Application Money The amount an investor is asked to pay with the application for new issues,
usually less than the full value of the shares, the remainder being either fully or partly collected on
actual allotment.

Warrants Application Money

Company issued warrants (convertible in equity shares) Money The amount an investor is asked
to pay with the application for new issues, usually less than the full value of the shares, the
remainder being either fully or partly collected on actual allotment.

Unclaimed Dividend
it refers to dividend payable to shareholders but have remained unpaid for a period of not less
than 12 months

Interest Accrued But Not Due

A term used to describe an accrual accounting method when interest that is either payable or
receivable has been recognized, but not yet paid or received. Accrued interest occurs as a result
of the difference in timing of cash flows and the measurement of these cash flows.

Go to Index

Provisions
A provision takes into account an expected expense, showing it as a liability on the balance
sheet. A company will create a provision in the current period when the likely liability becomes
apparent, thus reducing the reported profit.
Examples :
Provision for Tax
Provision for Fringe Benefit Tax
Provision for Corporate Dividend Tax
Provision for Gratuity
Provision for Dividend
Proposed Equity Dividend
Provision for Contingencies
Provision for depreciation in investment
Other Provisions

Miscellaneous Expenses not written off

A company spends money on various things. If money spent is sizeable and can be given a name
as per materiality concept, it can be shown separately. But if money spent on petty stuffs, they
can be grouped and shown under Miscellaneous Expense. If the benefit of these expenses is
receivable over a period of time, this amount can be written off in parts. The amount which is yet
to be written off can be shown as "Misc Expenses not written off".
Examples :
Discount on issue of shares
Discount on issue of Debentures
Preliminary Expenses
Deferred revenue expenses
Pre-operative/Trial run Expenses
Promoter's Expenses
Debenture/Share Issue expenses
Royalty/Liscense fees/ Technical Knowhow
Financial charges / Expenses not written off
Other Miscellaneous expenditure not written off
Less: Misc.Expenditure written off during the year

Deferred Tax Assets

An asset on a company's balance sheet that may be used to reduce any subsequent period's
income tax expense. Deferred tax assets can arise due to net loss carryovers, which are only
recorded as assets if it is deemed more likely than not that the asset will be used in future fiscal
periods.

Deferred Tax Liability

An account on a company's balance sheet that is a result of temporary differences between the
company's accounting and tax carrying values, the anticipated and enacted income tax rate, and
estimated taxes payable for the current year. This liability may or may not be realized during any
given year, which makes the deferred status appropriate.

Contingent Liabilities
The possibility of an obligation to pay certain sums dependent on future events. Defined
obligations by a company that must be met, but the probability of payment is minimal.

Types of Contingency Reserves : Contingencies include potentially uncollectible monies owed

the company, potential obligations under product warranties or related to product defects,
judgments from pending or threatened litigation and likely losses due to fires and other hazards
Examples :

1. Claims not acknowledged as debt

2. Guarantees undertaken
3. Letter of Credit
4. Bills Discounted
5. Disputed Sales Tax
6. Disputed Income Tax
7. Disputed Excise Duty
8. Other Disputed Claims
9. Uncalled Liability on Shares
10. Others

Go to Index
FINANCE - INVESTMENTS

Investments
Companies often make investmment in shares debentures, bonds, mutual funds, etc. The sum of
all such investments outstanding at the end of the balance sheet date is captured in this datafield.
There is one exception. Investments made by investment companies that are engaged entirely, or
essentially, in the business of purchase and sale of securities for making profits from these are
not included in this datafield. Investments of such companies is treated as stock in trade and not
investments. Investments by all other companies is included in this datafield.

Equity-Quoted
This datafield captures the investments made by a company in the equity shares of other
companies It includes such investments in group and non-group companies. These shares will be
listed on the stock exchange.

Equity-Unquoted
This datafield captures the investments made by a company in the equity shares of other
companies It includes such investments in group and non-group companies. These shares will
not be listed or traded on the stock exchanges.

Debenture-Quoted
Investments made by companies in debt instruments e.i. debenture /bonds is reported in this
datafield. These instruments will be listed on the stock exchange.

Debenture-UnQuoted
Investments made by companies in debt instruments e.i. debenture /bonds is reported in this
datafield. These instruments will not be listed on the stock exchange.

G. Sec.-Quoted
Investments made by companies in debt instruments issued by the govt. Includes treasury bills,
NSC, Indira Vikas Patra and other government securities is reported in this datafield. These
instruments will be listed on the stock exchange.

G. Sec.-UnQuoted
Investments made by companies in debt instruments issued by the govt. Includes treasury bills,
NSC, Indira Vikas Patra and other government securities is reported in this datafield. These
instruments will not be listed on the stock exchange.

Units-Quoted
Investments made by a company in mutual funds is reported in this datafield. These mutual funds
schemes will be listed on the stock exchange.

Units-UnQuoted
Investments made by a company in mutual funds is reported in this datafield. These mutual funds
schemes will not be listed on the stock exchange.

Pref.-shares
This datafield captures the investments made by a company in the preference shares of other
companies, It includes such investments made in group and non-group companies. Includes
quoted, unquoted and partly paid up preference shares.

Go to Index
SHARE PRICE - LATEST EQUITY

Latest Equity(Subscribed)
Latest Equity capital (subscribed) with adjustments if any (beween two financial year ends)

Latest Reserve
Latest Reserves with adjustments if any (beween two financial year ends)

Latest EPS -Unit Curr.

Earnings per share : (TTM Adjusted Net Profit / Latest Equity)*Latest Face Value

Latest Bookvalue -Unit Curr.

Book value is the accounting value of a firm.
(Latest Equity Capital + Latest Reserves)/Latest Equity Capital*Latest Face Value

Stock Exchange
Name of stock exchange where company is listed exm. BSE,NSE or regional stock exchanges.

Latest Market Price--Unit Curr.

Latest Quoted price of stock.

Latest P/E Ratio

(Current Market Price / Latest EPS (as calculated above))

Latest P/BV
(Current Market Price / Latest Book Value (as calculated above))

Market Capitalisation
Latest Market capitalisation of a stock (current market price*total number of outstanding shares).

Dividend Yield -%
A financial ratio that shows how much a company pays out in dividends each year relative to its
share price. In the absence of any capital gains, the dividend yield is the return on investment for
a stock. Dividend yield is calculated as follows:
(Latest Year end Dividend Amount / Latest Market Cap.)

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